1.
Business Model (Introduce your business)
Business model is set of activities that a business do plan to undertake in order to keep
the business profitable and survive in the long run. As our business is in the category
supplying retail products for the consumption of final consumers in a market, we are
fallen under the category of B2C. (Business to Consumer).
We are running an online store that let’s buyers to purchase foreign chocolates for a
lower price when compared to market prices. The business name is BON BON
CHOCOLATE SHOP. We are able to supply all most all brands and types of chocolates
coming under the brand at a lower price due to the capability of having a supplier who
can provide us products at a highly discounted price.
2. Customer value proposition
Online shoppers constantly look for the most affordable option, knowing that they can
easily find a better deal with a click. As we mentioned, Bon Bon Chocolates is kind of
special for people who are searching for branded chocolates with affordable prices. We
provide our products with lower prices than actual market price and also we provide
attractive offers. Even though a lower price can have a positive impact on consumers’
purchasing decisions, it can also signal a lower quality. And the impression of low quality
will decrease the perceived value of the brand in consumers’ mind. Therefore we have to
analyze price sensitiveness of demand more deeply before assigning prices. We are
offering personalized offers, category-specific discounts and introduce new offers for
specific time periods such as valentine, Christmas etc. Especially we send personalized
emails to our customers and it helps to make our customer feel special. Our whole
transactions go through online and it helps to customers to save their time and make their
lives easier. We make sure that they invest in the right products without a second thought.
3. Revenue model
Our business derives profit by selling branded chocolates over the internet through our
online platform. Therefore we use Sales Revenue Model.
There are some suppliers that sell products which move in line with chocolate (smoothie,
bakery items etc.) We are hoping to come into agreements with them by the way of
letting them advertise in our website and we will take an advertising fee from them. But
this is still in the planning process as our website reach level is not enough to take that
kind of step.
4. Market opportunity (Market place – Target Market)
In every market there are number of segments of customers. We have to identify the
correct segment of potential customers in the market and do our marketing and promotion
activities by concentrating on values and perceptions of customers in that particular target
segment in order to get the best advantage.
The key segment we are targeting is who are falling under age category of 15-30. The
main reason is this is the age people are craving to taste various sweet items and also
people tend to buy gifts for their loving ones at this age. So we can grab that opportunity
to success our business.
5. Competitive environment (Main competitors)
We are operating in a highly competitive market. There are no of sellers in the market
who provide chocolates for the price we are offering. But if you compare their market
prices and ours we will always be on the top of lowest market price. Case here is they are
ordering bulk quantity at once and once they are closer to expire they provide huge
discounts and in turn our products become relatively expensive.
Eg- THE CHOCOLATE HOUSE, DARAZ
6. E-commerce presence strategy and the rationale of your choice
We present our ‘Bon Bon Chocolate Shop’, E-commerce business mainly by using
website for customer to place order for our product. It’s easy to customer to select what
kind of chocolate they need. By using website, we can easily approach to our target
market.
In addition, we use Facebook page and Instagram page to promote our Chocolate Shop.
So people who reach our shop from social media platforms will get the easy access to our
website.
We will generate softcopy invoices for all sales and deliver it to customers once we
received the final payment
.
7. Competitive advantage (if any)
The main advantage of having an online business is the cost difference when
compared to setting up a traditional office base company.
The prices are often competitive in comparison to the actual store price.
Fast delivery of products
Opportunities to manage our business from anywhere in the world
Global access, 24 hours a day, 7 days a week.
8. Marketing strategy
1. Creating original content for all the platforms
In an e commerce business, creating original content for e-commerce platforms,
considers as an essential marketing strategy. Creating original – high quality content will
increase the customer interaction that make them purchase our products and build the
trustworthiness with us.
2. Optimizing website lay out
It’s really important to make sure that your website’s layout, language, and placement of
conversion elements are user friendly. That means your website should be simple for
customers to check out. For that reason, we always do some test when we did some
updates in our website
Moreover, it should be definitely making sure our website is responsive to any user
layout. Today mobile users are increasing rapidly day by day.
3. Content marketing
Creative content marketing has the eligibility of expanding new customer audience. To
do that our team wish to create different type of contents. Blog posts, newsletters and
articles are some of them.
4. Social Media marketing
Now days, social media marketing is the most powerful e-marketing method. Our social
media campaign gives us eligibility of generating, engaging of audience and interaction,
boost traffic to our website, and develop a larger base of customers.
9. Payment system
As we are engage in online transactions we need to make sure both customers and our
confidential information do not received by unauthorized parties and all our transactions
are done through a secured payment method. Then only customers will be motivated to
buy from us. So we have selected PayPal as our payment method.
10. Amount of initial capital needed
We need no significant initial capital to carry on this business. We deliver to customers
only when they place order and we received the payment for that particular order. Once
we received the payment we will buy items in that particular order, since we are in the
introduction stage of our business. And also we do not plan to keep a stock on hand as the
suppliers are highly reliable. So basic initial cost will be to obtain domain name and
marketing through social media.
11. Source of Capital
We obtain the initial capital from owners as it is not a significant amount.
